Medical Insurance After You are Divorced

September 10, 2012
By
Edward R. Weinstein

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If you are going through the New Jersey divorce process, and your health
insurance is currently covered through your spouse’s employer, you
are going to need a plan for coverage in your post-divorce life. Typically,
married couples handle their health insurance coverage through one of
their employers. When the divorce is finalized only the employee remains
on the plan and the other spouse must make alternate arrangements. As a
divorce attorney I have found this to be a common problem when one spouse is not currently
working or only works part-time to care for the home and/or children.

If you are going to lose your health insurance as a result of your divorce,
it is critical to explore your options and come up with a plan of action
before your divorce is finalized. The financial costs associated with
your post-divorce health insurance can be a bargaining point in the proceedings
and your soon to be ex-spouse may be required to pay for them. Listed
below are the most common options for obtaining health insurance.

1) If you are working, the obvious first place to check is with your current
employer. This tends to be the most cost-effective way to obtain the best
possible coverage. Even if you work part-time your employer may have options
for you. If part-time employees are not eligible to receive medical coverage,
you may also explore the possibility of working full-time to obtain coverage
(with the added benefit of a bigger paycheck!).

2) A second choice is COBRA (Consolidated Omnibus Budget Reconcilliation
Act), a federal law requiring that when an individual no longer qualifies
for a health insurance coverage through an employer (with more than 20
employees), that individual needs to be given the ability to continue
coverage through the plan at their own expense. In other words, you can
remain on the plan, but pay the full cost of the premium. Now, without
the benefit of the company contribution, this can be an expensive option,
but should be considered as the costs could become part of your spousal
support as the court can order your spouse to pay your insurance premium
as part of the settlement.

3) You can also contact various private health insurance companies about
purchasing an individual plan. There are many insurance companies that
offer this option to address the number of individuals who may find themselves
without insurance coverage. The benefit is that you can tailor a policy
to fit your individual needs (and budget) selecting certain types of coverage,
deductible and co-pay amounts. This option can be pricy as well since
as the consumer, you will pay the entire premium, but again, these costs
can be negotiated during your divorce proceedings.

If you are in school either part or full-time, your college or university
may have a student insurance policy available for purchase. These plans
usually have options and levels but at a minimum should provide basic coverage.

4) If you are a member of an organization, such as a professional, alumni,
or special interest group, you may have the ability to purchase health
insurance. Just call the administrative number of the organization to
ask about health insurance options.

If you are wondering how you are going to find and afford health insurance
coverage, it is best not to stumble around on your own. Our team of experienced
New Jersey divorce attorneys can help you decide which type of plan is
right for you and then make sure the associated costs are not a financial
hardship on your post-divorce budget. Call us today at (732) 783-5588
for a free consultation.

The information on this website is for general information purposes only.
Nothing on this site should be taken as legal advice for any individual
case or situation. This information is not intended to create, and receipt
or viewing does not constitute, an attorney-client relationship.